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|Economy Triggers Decline in Charitable Donations: New Tool Maximizes Gifts|
Capital One No Hassle Giving Site Covers Transaction Costs So More
Money Gets to Non-Profits
MCLEAN, Va.--(BUSINESS WIRE)--Sept. 24, 2008--Capital One Financial Corporation (NYSE:COF) announced today the launch of the No Hassle Giving site (www.capitalone.com/give) that allows Capital One cardholders to research, select, and donate to the cause of their choice. Capital One covers the transaction costs for every donation, ensuring that 100 percent of the donation is delivered to charity.
In partnership with the non-profit Network for Good, the No Hassle Giving site offers a comprehensive database of more than 1.2 million verified U.S charities as provided by GuideStar, the leading source of information on U.S. non-profit organizations. Cardholders can search the site for a cause by topic, charity or zip code.
A recent online National Survey of U.S. Adults on Current Charitable Giving Practices conducted by Capital One reveals that, while 73 percent of surveyed adults report that they have a credit card for personal use, as few as 18 percent have ever made a charitable contribution via an online Web site using their credit card. According to Guidestar, charities benefit from credit card contributions online as they are the more cost efficient way to receive donations.
One drawback with online giving up until now has been that there are real costs associated with enabling online payments, which can take away up to five percent from the overall donation. According to the survey, more than 60 percent of respondents are unaware that transaction costs are deducted from the overall donation when making a charitable contribution online.
"The convenience of the Internet has changed the way many Americans conduct their daily lives. It's how many of us shop, get our news, and deal with finances. It is also gradually affecting the way people give to their favorite charities," said Bill Strathmann, CEO of Network for Good. "This new site is a great way to maximize charitable donations, and helps everyone do more good, from transforming lives to greening our planet."
Survey results also reveal that in the past 12 months, 83 percent of respondents have become more concerned about their finances, and more than half indicate that they are either unable to donate or have reduced their donations to charities because of financial concerns.
"When people tighten their wallet, philanthropy is often the first to feel the squeeze," GuideStar president Bob Ottenhoff said. "During difficult economic times, the challenges facing non-profits are two-fold: people are giving less and need is rising."
With the No Hassle Giving Site, Capital One cardholders can make tax-deductible charitable donations online the way they want--one-time only or a recurring donation. Capital One rewards customers will earn rewards on their donations, and they will receive access to a detailed donation history and summary of tax-deductible donations.
"This is another way Capital One is providing our customers the chance to personalize and enrich their credit card experience," said Capital One spokesperson Pam Girardo. "Every dollar counts - for our customers and our communities. We're proud to be able to support our cardholders and the non-profit community in this way."
The survey also revealed: -- Only one-fifth (18 percent) of respondents report that they have cut back on other spending in order to make regular contributions during the past 12 months. -- Sixty-seven percent of Seniors have reduced the amount they typically donate to their regular charities due to financial concerns during the past 12 months versus 56 percent of Boomers, 51 percent of Gen X and 42 percent of Gen Y. -- Females are more likely to report that they have been unable to afford to make charitable donations they made in previous years due to financial concerns over the past 12 months. Survey Methodology
Findings detailed in this report are based on survey research conducted via the Russell Omnibus July 25-28, 2008. During this period, a self-administered questionnaire was completed from a secure Web site by a sample of 1068 online U.S. adults. Figures for gender, age, and geography were weighted where necessary to match their actual proportions in the population. Results among total respondents have a statistical precision of plus or minus 3.1 percentage points of what they would be if the entire adult population had been polled with complete accuracy.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries collectively had $92.4 billion in deposits and $147.2 billion in managed loans outstanding as of June 30, 2008. Headquartered in McLean, VA, Capital One has 740 locations in New York, New Jersey, Connecticut, Texas, and Louisiana. It is a diversified bank whose principal subsidiaries, Capital One, N.A. and Capital One Bank (USA), N.A., offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
CONTACT: Capital One Financial Corporation Pam Girardo, 703-720-2351 email@example.com SOURCE: Capital One Financial Corporation